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Credit Rating Services Act, 2012 (Act No. 24 of 2012)

Chapter 6 : Administration of Act

24. Rules

 

 

(1)        Subject to section 20, the registrar may, by notice in the Gazette, make rules with regard to—

(a)        organisational requirements for registered credit rating agencies;

(b)        the independence of registered credit rating agencies and the avoidance of conflicts of interest by registered credit rating agencies;

(c)        the quality and integrity of credit ratings;

(d)        the presentation of credit ratings;

(e)        additional obligations in relation to credit ratings of structured finance instruments;

(j)        additional disclosures;

(g)        adequate and appropriate record-keeping;

(h)        fraudulent and misleading  advertising, canvassing and marketing;

(i)        suitable  guarantees, professional indemnity or fidelity insurance cover,  and mechanisms for adjustments of such guarantees or cover;

(j)        the control or prohibition  of incentives given or accepted by a credit rating agency;

(k)        the responsibilities of credit rating agencies to investors and the public; and

(l)        any matter that the registrar is required or permitted to prescribe in terms of this Act.

 

(2) The rules contemplated in subsection (1) may—
(a) apply  to  registered  credit  rating  agencies, credit ratings, endorsed credit ratings or credit rating services generally; or
(b) be limited in application to a particular type of registered credit rating agency, credit rating or credit rating service.

 

(3)

(a) Before the registrar makes any rule under this section, the registrar must—
(i) publish a notice of the release of the draft rule in the Gazette, indicating that the draft rules are available on the FSB official website, and calling for public comment in writing within a period stated in the notice, which period may not be less than 30 days from the date of publication  of the notice; and
(ii) submit the draft rule to Parliament  while it is in session, for parliamentary scrutiny at least one month prior to promulgation.
(b) If the registrar alters a draft rule because of any comment, the registrar need not publish the alteration prior to making the rule.
(c) After consideration of any comments received in response to the publication  and consideration  of comments received  in respect  of the submission of the draft rule to Parliament in terms of paragraph (a)(ii), the registrar may publish the final rule in the Gazette, and a copy of the published final rule must be submitted to Parliament.

 

(4)

(a) The registrar may, if in the opinion of the registrar it would impair the achievement of the objects of the Act if a rule is not published immediately, publish that rule in the Gazette without complying with subsection (3)(a), provided that the notice of publication indicates—
(i) the reason why circumstances necessitated publication of the rule without giving notice as contemplated in subsection (3)(a); and
(ii) that any person who is aggrieved by the rule may make representations to the registrar within a period stated in the notice, which may not be less than 30 days from the date of publication of the notice.
(b) If the registrar publishes a rule in terms of paragraph (a), the notice referred to in subsection (1) must be submitted to Parliament, and Parliament may provide submissions on the rule, to the registrar.